Yes, that was funny first time i saw it. However, using the low altitude fuse gives you the correct dive-bomb delay of 14 seconds.
I was just now flying the QMB ground attack mission, exiting, reflying and so on in order to practice my aiming technique. I limited the opposition to just one flight of three defiants (i wanted to practice bombing/strafing, not dogfight 2 flights of spits at low level

) and they happened to be the ones that spawn on the ground, good for some strafing practice. My flight was four Bf-110C7s with 2xsc250 each. The ground targets in the mission are a vehicle column and a train (just like in IL2:1946) next to the airfield, the AI wingmen go after the vehicles.
Long story short, i had no problem with the low altitude fuse when following the traditional method for a low level attack: shallow dive, place crosshairs on target, release when target disappears below the nose or if you are diving a bit more steeply just pull up a bit to make the target move under the nose and release.
If you want to see some spectacular fireworks go for the train, there's a few fuel tanks on that one. First time i tried the mission i forgot to arm my bombs, looped over the train and came down on it vertical with all guns firing...suddenly it all goes ablaze, i went through the explosion and my poor 110 was blown to bits
On another note, there are some very interesting delay fuses for the RAF bombs with a reasonable delay. I was messing around with the load-out screen and saw that you can use a 6 hour delay fuse on the 250lb bombs. Not much use for single player, but it will be awesome for a long-running server with day/night cycles enabled...sneaking in at night with a blenheim, dropping a few around the enemy airfield and when morning comes and people start taking off there are things randomly exploding all over the place